Some Things I’m Learning About Debt

Firstly, there’s an incredibly strong Jubilee South movement. The South refers somewhat to countries in the Southern Hemisphere, traditionally the poorer countries. But this reference is also symbolic of countries that have been traditionally oppressed, pushed down by wealthier nations. Jubilee refers to the year (described in the Old Testament) in which all debts are cancelled.

I’m learning about the co-responsibility of borrowers and creditors. For example, in the case of the Democratic Republic of Congo, the International Monetary Fund (IMF) loaned billions of dollars to the then dictator, Mobutu. IMF officials became aware that this leader was siphoning the funds into his pockets. Though private banks/lenders REFUSED to lend to the Congo, the IMF still lent another $4 billion, knowing it would be misspent! This is an example of irresponsible lending.

I’m learning that the UK, France, and Belgium received World Bank funds for their colonization of African nations. When the Africans achieved independence, this European burden of debt was transferred to the very Africans enslaved by these funds.

In Kenya, loans were used for the Rural Electrification Project – intended to bring power to the rural reaches of Kenya. Those involved in this project forged local people’s signatures, saying that they indeed had power, when truly the majority of the project funds had been misspent.

I’m just beginning to learn about the notion of historical, social, and ecological debts. I’m hoping to attend a session later today that will shed more light on this issue. Jubilee also has a number of sessions around debt audits, and what these could look like. All of this new knowledge is exciting, but just a little bit exhausting.